You could get 2 solid B/B+ cash flow rentals in Birmingham with 20% down and have some cash left over as reserves. 

I’m looking for some confirmation and evidence.

It helps me confirm the roofer's thoughts and advice. 

I will work on getting a date picked and the reservations confirmed. 

I believe that is what you are saying but wanted to confirm. 

Thanks John.What about passive investments in syndications...does your last bullet above confirm that you feel they qualify as well?

As in so recently it is only confirmed by a fairly credible local paper.

Put as much as you can in the reserve account so you can easier do anything necessary.Positive cash flow is more important than the location. 

I would increase your CapEx and Repair reserves to 10%/5% respectively.  

As always, please confirm anything I (or anyone else on BP) says with your attorney (and perhaps a CPA).I'd definitely double-check with the HML to see if they're okay with you receiving secondary financing.